Should you itemize?

Reviewed and used with special permission from
the IRS by: Brenda Procter, M.S., State Specialist & Instructor,
Personal Financial Planning, University of Missouri Extension

Whether to itemize deductions on your tax return depends on how
much you spent on certain expenses last year. Money paid for medical
care, mortgage interest, taxes, charitable contributions, casualty
losses and miscellaneous deductions can reduce your taxes. If the
total amount spent on those categories is more than the standard
deduction, you can usually benefit by itemizing.

The standard deduction amounts are based on your filing status
and are subject to inflation adjustments each year. For 2011, they
are:

Single $5,800

Married Filing Jointly or Qualifying Widow(er) $11,600

Head of Household $8,500

Married Filing Separately $5,800

Some taxpayers have different standard deductions. The standard
deduction is more for taxpayers age 65 or older and for those who
are blind. It is generally less for those who can be claimed as
a dependent on some other taxpayer’s return.

When a married couple files separate returns and one spouse itemizes
deductions, the other spouse must also itemize and cannot claim
the standard deduction.

Some taxpayers are not eligible for the standard deduction. They
include nonresident aliens, dual-status aliens, and individuals
who file returns for periods of less than 12 months.

To itemize your deductions, use Form 1040, U.S. Individual Income
Tax Return, and Schedule A, Itemized Deductions.

Remember that for the genuine IRS website, be sure to use .gov.
Don't be confused by internet sites that end in .com, .net, .org
or other designations instead of .gov. The address of the official
IRS governmental website is www.irs.gov.